Yachtmakers See Huge Potential in China

Global yachtmakers are angling to get into China’s nascent yacht market to tap the potentially huge demand represented by its 875,000 millionaires, half of whom plan to buy a yacht, according to a recent Hurun report.

As of now China’s yacht market remains more potential than actual

“I believe that China has the huge potential for growth, even the fastest growth in the world,” said British yacht designer Alex McDiarmid at last weekend’s Monaco Yacht Show. He noted the circulation growth of yacht magazines in China and said his company has created special yacht designs for the China market.

“The yachting market in China is emerging and exciting,” said Thierry Regnault, technical manager of France-based CMN shipyard. His company has yet to begin selling yachts in China but plans to kick off sales at next year’s Hainan yacht show.

Foreign yacht builders currently serve China’s middle- and high-end yacht market while domestic brands focus on the middle- and low-end market with the help of designs and manufacturing technology from European and American partners.

Kingship Marine is a Hong Kong-based yachtmaker that owns a shipyard in Zhongshan in Guangdong province. Its steel and aluminum luxury yachts are currently sold exclusively overseas but managing director Roger Liang expects to begin selling them in China soon.

Of 400 domestic boat manufacturers at the start of 2010, 75 made yachts. Only about 40 had annual sales of over 10 million yuan ($1.56 million).